Why Should You Invest in Education Business?

Why Should You Invest in Education Business?

The high demand for education globally is the ultimate reason why investing in education business today can make a big difference not only your profitability but also on the literacy, work competitiveness and high-level learning of millions of people around the world in the near future.

Education business comes in various sizes, shapes and forms. Whether your area of expertise is on primary and secondary education, tertiary level, corporate learning, or professional training and development, the education market certainly has a lot of space to welcome your investment.

High Demand for Education Globally

To give you better insights on the present and future trends in the global education marketplace, take a look on these reports from various global research firms.

“Around 250 million children in the world either fail to make it to grade 4 or do not reach the minimum level of reading, writing, and doing math.” – Global Partnership for Education

“In advanced countries, almost 90% of the population aged 15-64 has attained at least some secondary education, compared to only 63% in developing countries. Likewise, though more than 33% of the working-age population in advanced countries has achieved some level of tertiary education, the proportion is just 12% in the developing world.” – World Economic Forum

“If American workers had just one additional year of education, the U.S. Gross Domestic Product would increase by $ 525 billion over five years.” – Standard & Poor’s

From this vital information, it is imperative that the demand for quality and continuous education will continue to grow over the next decades. As new model of learning begins to emerge and take a share of the education market, it is becoming clear that there are more business opportunities waiting for the entrepreneurs, investors, and educators. Supporting this assertion is the study conducted by IBIS Capital in 2012. According to the firm, the global education expenditure in 2012 was $ 4.4 trillion and is expected to reach $ 6.3 billion by 2017. Indeed, this estimate is a clear signal to education providers that today is the right time to launch their investments in the education business.

Gaps to Fill in the Global Education System

According to analysts, here are the reasons why education business has a critical role to play in filling out the gaps between global education system and business economy.

First, there is a loud call to improve the education systems in the emerging market economies of Asia, Africa and Latin America. It is projected that by 2030, millions of children born in the present and previous decades in these regions will be the job seekers that companies are going to recruit. If this workforce would lack the substantial knowledge at work, thousands of companies are at risk of losing their business.

Second, poor access to good quality education will pose bigger challenges to the profitability and growth of many businesses in the coming years. The skills gap in particular would impede the ability of companies to scale up their operations in locations with higher demands.

Lots of Investment Opportunities

Economists agree that investing in education particularly in the K12 sector today could offer a significant return on investment both to the private investors and the economy of the country where they would operate their business. Moreover, they also believe that the convergence of new innovative learning systems like eLearning and MOOCs with tertiary-level education can potentially increase the future economic value of tomorrow’s talent. From these insights, it is apparent that education providers really have lots of business opportunities to grab in the education market.

In fact, among of the most in demand education business today are course development, establishment of training and development centers for students and professionals, tutoring services for pre-K12 learners, curriculum writing for college and universities, and engaging with partnership programs with companies for employee learning curve enhancement. With these wide-ranging investment opportunities, investors can definitely get their market share if they invest in education business today.

Paul Hata is involved in various education and ministry programs across Asia aimed at providing internationally accredited programs from United Kingdom at the most affordable prices. Paul can be reached at – www.bccolleges.co.uk